Contents
Why Technology Acquisition is the new R&
Competitive advantage often comes from leveraging the discoveries and intellectual property of others. Progressive companies internationally are looking to external sources of technologies and products to complement their internal R&D activity. This is the new ‘open innovation’ environment in which Irish companies are competing.
Technology Acquisition
Technology acquisition enables companies to acquire new products and processes without going through the expensive and risky stages of research and development. These technologies are usually found internationally from other companies and from research centres, but may also be acquired from Irish sources. The most popular forms of acquisition are licensing, joint ventures and technical cooperation agreements.
Companies typically use technology acquisition when they need to:
- Fill a gap in their product portfolio e.g. product from US company to expand the product range.
- Enhance the functionality of a product e.g. electronic control module or software.
- Improve a manufacturing process e.g. extending the shelf life of food products.
Benefits
Many companies combine technology acquisition with their R&D activity, so that they can benefit from external as well as internally sourced technology. The commercial benefits of using technology acquisition over R&D include:
- Huge amount of technology developed internationally, much of it with licensing potential.
- Smaller upfront payment, as in many cases royalties are paid from sales.
- Faster to market, as the technology will often be already proven in another market.
- Technical and commercial assistance from the developer.
- Cost effective solutions for companies experiencing competition from low cost countries.
How Enterprise Ireland can help
TechSearch is a service through which companies can locate and acquire technologies external to the company, that are not readily available from commercial sources.
On the TechSearch website you will find useful information including an explanatory guide and case studies, as well as an on-line application form that will guide you through the points to be considered when engaging in technology acquisition.
From there you can contact the TechSearch team of specialists for advice and assistance in finding new products and licenses. You can find out more about TechSearch by visiting www.techsearch.ie.
How TechSearch operates
TechSearch is a free service, available to companies that are clients of Enterprise Ireland, IDA and Udaras na Gaeltachta.
- Application for the service is done simply and on-line via the website at www.techsearch.ie The site also contains educational material and links to related sites.
- Understanding your requirements is essential before the search process begins. Your market positioning and technology strategy are key factors underpinning your decision to take the technology acquisition route.TechSearch staff will review these with you before developing the technology specification in detail.
- Searching international sources is where TechSearch uses its networks, databases and information services to find technologies that match your requirements.
- Selecting and evaluating opportunities is done in close collaboration with the company. For full due diligence we may refer you to additional professional advice, particularly on legal and financial issues.
- Negotiating and agreeing the terms of the agreement can benefit from TechSearch assistance, leading to a Heads of Agreement document. Legal advice is recommended for the final agreement.
- Transfer and implementation requires close cooperation between the parties, so that adequate training and support is provided by the developer of the technology. In some cases marketing assistance may also be provided.
Contact us
We would be happy to receive your application through the website or to deal with your queries by email at techsearch@enterprise-ireland.com. Alternatively you may prefer to contact your Development Advisor or Project Executive in your development agency.